Danish banks seen passing stress test -report

COPENHAGEN: The three Danish banks in the Europe-wide test of how banks would cope with worsened economic conditions are expected to pass the so-called "stress test", Danish daily Politiken said, citing a finance ministry source.

Danske Bank, Jysk Bank and Sydbank are the three Danish banks in the stress tests of 91 European lenders, the results of which are expected later on Friday. "A centrally placed source in the finance ministry says that it would come as a big surprise to the ministry if the Danish banks fail the stress test," Politiken said.

"But at the same time (the source) points out that that does not necessarily mean that the banks will score top grades in all their tests," the newspaper said. Officials at the finance ministry could not be reached immediately for comment, and a spokesman at the Danish Financial Supervisory Authority, which is under the ministry of economics and business affairs, declined to comment.

Financial Supervisory Authority spokesman Soren Christensen said the regulator will post results of the stress tests on Danish banks at 1630 GMT.